AIM Advises Labels On Pinnacle December 03, 2008
- Global
| Indies
By Andre Paine, London
U.K. independent labels trade body AIM has called an emergency meeting after independent distribution company Pinnacle Entertainment went into administration.
Although calls at the company's HQ in Sidcup, Kent were not answered, accountancy firm BDO Stoy Hayward confirmed it had been appointed as the administrator today (Dec. 3). The move is roughly equivalent to Chapter 11 bankruptcy in the U.S.
Following an initial review of the company, 94 staff have been made redundant
Pinnacle claimed to distribute releases from more than 400 record labels, as well as DVDs and software. It handled releases by Dramatico, including Katie Melua, as well as Bella Union and One Little Indian. "The Katie Melua Collection" is one of the biggest current releases affected.
According to labels trade body the BPI, Pinnacle had a 4.3% market share in 2007. The company's wholesale business Windsong Holdings is also in administration.
Matthew Tait, BDO Stoy Hayward business restructuring director, said in a statement: "Unfortunately the company has been affected by the sudden and steep downturn in the U.K. economy. We are looking at how best we may be able to handle the trading assets and work with the company to achieve the most favourable outcome."
AIM is holding a meeting tomorrow (Dec. 4) at 11am at its HQ in west London.
"AIM is holding an emergency meeting for all labels affected by the pinnacle administration, which will be attended by corporate insolvency specialists," said CEO Alison Wenham in a statement. "We will do everything we can to help the labels affected to minimise their exposure and manage all necessary legal and financial matters as quickly and as cost-effectively as possible."
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